Housing Department
Contract Award for Broker Listing Services
w/ Compass (Formerly Deasy Penner Podley),
Mutual Realty Consultants, & Sotheby’s International
Realty
City Council
December 11, 2023
Housing Department
BACKGROUND
> CalTrans acquired approximately 460 properties
in the 1950s, 1960s, and 1970s in Pasadena,
South Pasadena, & El Sereno for the construction
of the SR-710 North project
> Roberti Act (SB 86) established priorities and
procedures for the sale of surplus CalTrans-
owned properties along the 710 corridor
> Senate Bill 959 (Portantino, 2022) amends the
Roberti Act and gives the City purchase priority
for vacant CalTrans homes located along the
710 corridor in its borders
2 Housing Department
BACKGROUND
> Under SB 959, the City has the right to purchase
vacant properties at the original CalTrans
acquisition price
> Properties need to 1) be used for affordable
housing or 2) net sales proceeds from market
sale must be used to create/preserve affordable
housing
> If properties are sold at market, proceeds are
used to finance affordable housing at a 3-to-1
ratio for every market home sold
Units funded with CalTrans net proceeds are
required to meet State prevailing wage reqs.
3 Housing Department
BACKGROUND
> CalTrans offered the City seventeen (17) vacant
properties via formal Notice on July 6, 2023
> City responded on July 25, 2023, indicating
interest in all seventeen (17) properties
> Four (4) of the properties have been identified
for potential affordable homeownership
> The remaining thirteen (13) are proposed to be
sold at market
Market buyers will be required to execute a
performance deed to ensure that properties
are maintained, brought up to code, &
occupied in a timely fashion
4 Housing Department
BACKGROUND: RFP – Broker Services
> City released an RFP for broker listing services on
July 7, 2023; RFP closed on July 25, 2023
> Outreach included notification via OpenGov
procurement system (reached 2,743
vendors),along with outreach to the Pasadena
Foothills Association of Realtors and Pasadena
Heritage
> Pasadena Now featured the RFP in an article
published July 17
th
> Missing items accepted during a limited window
(October 30
th to November 6th)
5 Housing Department
BACKGROUND: RFP – Broker Services
> Thirty-five (35) total proposals were received
Two (2) were disqualified for failure to provide
threshold documentation
The other thirty-three (33) were reviewed and
scored by an evaluation panel
Top three (3) scoring proposers are
recommended for award
6 Housing Department
BACKGROUND: RFP – Evaluation &
Evaluation Criteria
> Evaluation criteria included cross-departmental
input
> Evaluation panel was comprised of cross-
departmental staff, including Planning staff
(Design & Historic Preservation Section), City
Manager’s office (Economic Development &
licensed real estate broker), & Housing
Department
> State law prohibits gendered or racial
preferencing in public contracting
> Local Pasadena Businesses and Small/Micro
Businesses (certified w/State) each eligible for
five (5) points
7 Housing Department
BACKGROUND: RFP – Evaluation &
Evaluation Criteria
> Criteria included documented experience with
the sale of historic properties; CalTrans identified
that twelve (12) of the properties are historic
> All of these historic properties are proposed to
be sold at market
> All are contributing properties to either the
Markham Place Historic District or the Pasadena
Avenue Historic District
Both of these districts are listed on the
National Register
> Architects include Greene & Greene, Frederick
Roehrig, & G. Lawrence Stimson
8 Housing Department
BACKGROUND: RFP – Evaluation &
Evaluation Criteria
> Four (4) of the properties may be individually
eligible for the National Register of Historic Places
> Pasadena Heritage has identified three (3) of
the properties as potentially eligible for a historic
preservation easement
> Proposers asked to provide addresses and dates
of sale for any designated or contributing
properties previously sold
9 Housing Department
BACKGROUND: RFP – Evaluation &
Evaluation Criteria
> Evaluation Criteria was follows:
Responsiveness of Proposal 10 pts
Background & Relevant Experience 20 pts
Proposed Solution 30 pts
Marketing & Sales Strategy
Cost Proposal 20 pts
Local Pasadena Business 5 pts
Small or Micro Business 5 pts
Historic Property Experience 10 pts
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Recommended Vendors
11 Recommended Vendor Aggregate Total Score
Compass (Formerly Deasy Penner
Podley)
79.61 Mutual Realty Consultants 78
Sotheby’s International Realty 77.33
Housing Department
Proposed Commission Structure
12 > Proposed total commission is five percent (5%) of
the sales price
> Listing broker shall be responsible for paying
buyer’s broker two and a half percent (2.5%) of
commission earned at closing
> Total commission earned shall be reduced to
four percent (4%) if the buyer is represented by
the listing broker
Housing Department
FISCAL IMPACT
Recommended Actions will have no direct fiscal
impact
Funds recommended to be used are included in
the Department’s FY 2024 Operating Budget
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RECOMMENDATION
1. Find that the proposed action has no significant
effect on the environment and is categorically
exempt under CEQA Section 15061(b)(3)
2. Authorize the City Manager to enter into a
professional service contract and to execute all
related documents and amendments, with
William Podley, broker, and Compass (Formerly
Deasy Penner Podley) to provide broker listing
services for the marketing, listing, and sale of
five (5) residential properties for a one-year
term. The total contract amount is not to
exceed $462,420
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RECOMMENDATION
3. Authorize the City Manager to enter into a
professional service contract and to execute all
related documents and amendments, with
Michael Slaughter, broker, and Mutual Realty
Consultants, to provide broker listing services for
the marketing, listing, and sale of up to five (5)
residential properties for a one-year term. The
total contract amount is not to exceed
$462,420.
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RECOMMENDATION
4. Authorize the City Manager to enter into a
professional service contract and to
execute all related documents and
amendments, with Sotheby’s International
Realty to provide broker listing services for
the marketing, listing, and sale of up to five
(5) residential properties for a one-year
term. The total contract amount is not to
exceed $462,420.
16 Housing Department
RECOMMENDATION
5. Authorize the City Manager or his designee to
enter into any amendments to the contracts as
may be necessary to effectuate the
transactions, including increases in the contract
amount that may result from increases in the
market sale prices of the properties.
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